Canon Inc. Corporate Strategy Conference 2018

Transcription

1 Canon Inc. Corporate Strategy Conference 2018 March 6, 2018 Fujio Mitarai, Chairman & CEO This presentation contains forward-looking statements with respect to future results, performance and achievements that are subject to risk and uncertainties and reflect management s views and assumptions formed by available information. All statements other than statements of historical fact are statements that could be considered forward-looking statements. When used in this document, words such as anticipate, believe, estimate, expect, intend, may, plan, project or should and similar expressions, as they relate to Canon, are intended to identify forward-looking statements. Many factors could cause the actual results, performance or achievements of Canon to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptance of new products or services by Canon s targeted customers, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this presentation. A detailed description of these and other risk factors is included in Canon s annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. Canon does not intend or assume any obligation to update these forward-looking statements.

2 Excellent Global Corporation Plan Phase V ( ) (Basic Policy) Embrace the challenge of new growth through a grand strategic transformation (Key Strategies) 1. Achieve a cost-of-sales ratio of 45% 2. Reinforce and expand new businesses 3. Restructure global sales network 4. Enhance R&D capabilities through open innovation 5. Complete the Three Regional Headquarters management system 1

3 Excellent Global Corporation Plan Phase V (2017 Achievements) First time in 4 years to post overall sales and profit growth, first time in 9 years to post sales exceeding 4 trillion yen Doubled sales of new businesses. Expanded proportion of sales to 24% (Trillions of yen) New Businesses Net Sales 現行事業売上新規事業売上純利益 3.4T 14% 4.1T 24% (Billions of yen) B B

4 Phase V Future Initiatives and Priority Measures (Fundamental Policy) Pursue total optimization and prioritize profits to complete our grand strategic transformation (Major Measures) Thoroughly strengthen manufacturing prowess Strengthen product development capability Reform sales organization to reflect market changes 3

5 Reinforce Profitability of Existing Businesses (Thoroughly strengthen manufacturing prowess: Automation) Hardware assembly Camera derived expansion Progression of Automation Expansion through other businesses Unit assembly 4

6 Reinforce Profitability of Existing Businesses (Thoroughly strengthen manufacturing prowess: In-house Production) Expand scope of in-house production to manufacturing equip. maximize cost saving throughout the entire factory Key components Production equipment 5

7 Reinforce Profitability of Existing Businesses (Strengthen Product Development Capacity) Heavily invest resources into specific themes identified as having promising futures Net sales (Trillions of yen) 5 R&D expense (Billions of yen) 800 R&D expense ratio 15% 4 Net sales R&D expense R&D expense ratio % 2 1 Improve development efficiency through selection and focus Projection Projection Projection 0 5% 6

8 Reinforce Profitability of Existing Businesses (Gain Market Share) Share 55% Interchangeable-lens Cameras Laser Printers 50% 45% 40% Projection 2020 Projection Projection 2020 Projection 7

9 Expand and Improve Profitability of New Businesses (4 New Businesses expected to drive overall growth) Entering new phase that not only focuses on expanding sales, but also improving profits Healthcare Commercial Printing Network Cameras Industrial Equipment 8

10 Expand and Improve Profitability of New Businesses (Healthcare: Products that leverage high definition) CT system that realizes the first significant improvement in resolution in 30 years Conventional New Product Clearly visualize peripheral vascular level detail that has been difficult to accomplish with conventional CT systems. Image source: FUJITA HEALTH UNIVERSITY HOSPITAL Ultrasound system that can visualize minute blood flows without the use of a contrast agent 9

11 Expand and Improve Profitability of New Businesses (Healthcare: Medical IT Solutions) Medical IT Solutions that support the speeding up and precision of diagnostics in the medical field Process and supply information Data analysis Collection and integration image data Diagnostic imaging systems Collect, integrate, process, and supply information, leveraging image processing and AI technology 10

12 Expand and Improve Profitability of New Businesses (Network Cameras) Expand business from both hardware and software perspectives, strengthening cooperation with AXIS and Milestone Video Analytics Video People counting in a designated area Camera VMS Interchangeable-lens network camera achieved through co-development Silhouette of people and their movement Further enhance technology cooperation 11

13 Expand and Improve Profitability of New Businesses (Network Cameras) Expand usage to various other segments, promoting development of video analytical solutions Security Marketing Crime prevention, people tracking, evacuation Customer base, people-flow analysis, improve productivity Entertainment Traffic monitoring, urban development Live streaming and sports analysis 12

14 Expand and Improve Profitability of New Businesses (Commercial Printing: Focus on Graphic Arts Market) High-quality continuous feed color inkjet press ProStream 1000 Package Printing High-speed cut sheet inkjet printer VarioPrint i300 Graphic Arts Printing Existing Document Printing Business Services Wide-format printer Colorado

15 Expand and Improve Profitability of New Businesses (Commercial Printing: Sales Engineer Training) Abundant product knowledge Excellent Sales Engineers Corporate customers Strong need Higher speeds Improved quality Greater efficiency Lower costs etc. End-users Deep understanding of complex commercial printing needs Propose Solutions 14

16 Expand and Improve Profitability of New Businesses (Industrial Equipment) Expanding use of OLED panels Smartphones VR OLED Panels HDTVs Foldable Smartphones Automotive 15

17 Phase V Target (Trillions of yen) 5 4 Existing Businesses New Businesses Net Sales Target 5 Trillion yen 30% Projection 2019 Projection 2020 Projection 16

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